Ford s Sustainability Strategy

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1 Ford s Sustainability Strategy John Viera Director Sustainability & Vehicle Environmental Matters Marketing New Powertrain Technologies: Strategies in Transition Oakland University February 15, 2012

2 Ford s Sustainability Vision Our vision for the 21 st century is to provide SUSTAINABLE transportation that is affordable in every sense of the word: Environmentally, Socially & Economically Improved sustainable performance is not just a requirement, but a tremendous business opportunity. - Bill Ford 1

3 Sustainability at Ford Product Process Manufacturing Dealers Environmental CO 2 Energy Security Sustainable Economic Profitability Cash Flow Meeting the needs of the present without compromising the future. Social Human Rights Working Conditions 2

4 Technology Innovation Pillars Sustainability GREEN Improve fuel economy; reduce CO2 emissions to leadership levels More renewable, recycled materials Improved In-Vehicle Air Quality Technology Strategy Anticipate Innovate Incorporate Safety SAFE Achieve public domain targets and 3rd Party Recommended Buys Safety technology / feature content equal or better than competition Breakthrough features for family safety Design SMART Design leadership on each new program Exciting interiors: leadership in comfort / convenience, infotainment technology Global platforms with right proportions Improve emotional appeal Capabilities & Enablers "QUALITY" A CLEAR TECHNOLOGY STRATEGY WHICH SETS PRIORITIES AND GUIDES ACTIONS TO ACHIEVE OUR VISION FOR BRINGING AFFORDABLE TECHNOLOGY TO MILLIONS. 3

5 Process to Manage Sustainability for Our Products Marketing/ Communications Plan 4

6 Science Stabilizing Atmospheric CO 2 Levels 5

7 Ford s Path to Sustainability Near Term Begin migration to advanced technology Mid Term Full implementation of known technology Long Term Continue leverage of Hybrid technologies and deployment of alternative energy sources Near Term Mid Term Long Term Advanced Gasoline Engines Electrified Vehicles Fuel Cells Hybrids Hydrogen Powered Engines Natural Gas Weight Reduction 6

8 Leveraging Global Platforms Plug & Play into High Volume Platforms with Globa PHEV HEV Diesel Engine Gas Engine BEV Biofuel 7

9 Introduction of EcoBoost Technology Gasoline Direct Injection Turbocharging Downsizing & Boosting 8

10 Introduction of EcoBoost Technology 3.5-liter version of the engine contributes 125 new patents and patent applications for Ford 9

11 Ford Flex Fuel Vehicles More ethanol is produced and used in the U.S. than the amount of gasoline imported by the U.S. from Saudi Arabia and Iraq combined Between 2006 and 2010 model years, Ford delivered on its pledge to double the number of flexible-fuel vehicles produced in the U.S. Ford Flex Fuel Vehicles include: Escape Fusion F-150 Expedition E-Series Lincoln Navigator

12 Ford CNG Vehicles Compressed Natural Gas (CNG) is a clean-burning fuel that significantly reduces CO, CO2 and NOx CNG Transit Connect taxis are used in Chicago, Los Angeles, Philadelphia, Boston and San Francisco Ford CNG vehicles include: E-Series Transit Connect Super Duty Chassis cab Super Duty pickup Medium Duty (2012)

13 Electrification Strategy Transit Connect BEV Focus Electric BEV C-Max Energi Plug-In Hybrid Fusion Hybrid/Plug-In Hybrid

14 Electrification Projects US and Europe 2004 CY 2010 CY CY HEV Hybrid Electric Vehicles FUSION/MKZ C-MAX HEV (Next Generation HEV, Global C-Platform) NEXT GEN HEV (Global CD-Platform) Next Generation HEV (CD-Platform) C-MAX HEV Next-Generation HEV PHEV Plug-in Hybrid Electric Vehicles C-MAX ENERGi (Global C-Platform) New C-MAX PHEV BEV Battery Electric Vehicles TRANSIT CONNECT ELECTRIC TRANSIT CONNECT ELECTRIC FOCUS ELECTRIC (Global C-Platform) New PHEV (Global FOCUS C-Platform) ELECTRIC (Global C-Platform) Ford s Industry-unique Approach will Deliver 5 New Electrified Vehicle Alternatives for US Customers by 2012 and for European Customers by Escape

15 Ford s Global Platform C-MAX 5-Passenger Focus 5-door Hatchback Focus Wagon Focus ST Focus 4-door C-MAX 7- Passenger C-MAX Hybrid Escape/ Kuga Compact Utility C-MAX Energi Plug-In Hybrid Focus BEV All-Electric 14

16 Ford s Electrification Impact 2020 MY Electrification Volume Projections Units (Mils.) BEV PHEV HEV U.S. Europe China Japan

17 Ford Focus Electric INNOVATIVE DESIGN REMOVABLE, UPGRADABLE, SERVICEABLE 3-4 HOUR CHARGE ON 240V HOME OUTLET VALUE CHARGING 16

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19 Ford s Mobile Apps 18

20 Q&A